Zomato denies merger talks with Grofers, terms it “pure speculation and completely untrue”

New Delhi: Gurugram-based meals supply platform Zomato and e-grocer Grofers on Tuesday refuted reviews that they’re in acquisition or merger talks after reviews surfaced that Zomato might purchase Grofers for practically $750 million.

Flush with funds, Zomato presently partnered Grofers for the supply of important objects –along with different FMCG and grocery shops — to fulfill the surge in demand amid social distancing and nationwide lockdown that has now been elevated until May 3.

In an announcement shared with IANS, Zomato stated that the corporate has partnered with Grofers, alongside with different FMCG corporations, native grocery shops, and fashionable retail chains, to pilot its grocery supply service. “We are not aware of any other conversation with Grofers,” a Zomato spokesperson added.

A Grofers spokesperson added: “The news on the merger is pure speculation and completely untrue. Grofers is the country`s biggest online grocery retailer and has been growing at 2x every six months”.

After preliminary hiccups, Zomato has began grocery supply in over 80 Indian cities with supplying necessities like atta, dal, milk, greens and objects and for this, it has partnered current gamers like Grofers.

According to Prabhu Ram, Head-Industry Intelligence Group, CyberMedia Research (CMR), corporations are inventive pivots to remain related by pursuing new progress alternatives on the again of the brand new coronavirus pandemic.

“Expanding into near adjacencies is a given for companies, such as Zomato. From Zomato`s perspective, a partnership or acquisition of Grofers would provide it a good leg-up in its competition with Swiggy to win big in the grocery delivery segment,” Ram advised IANS.

Online meals and grocery retail are anticipated to the touch $10.5 billion by 2023, in keeping with a latest report by Bengaluru-based market consulting agency Redseer.

Zomato CEO Deepinder Goyal who’s bullish on the web supply of important objects has stated that their supply community within the nation is barely second to India Post.

“We are putting in every effort to make sure that we put it to good use to serve the community. We`d like to thank the government authorities, grocery stores, FMCG companies & other start-ups that have come forward to partner with us and support the community in this endeavor,” Goyal stated lately.

Zomato is presently valued at practically $3.2 billion whereas Grofers` valuation is round $650 million. Menlo Park, California-based Sequoia Capital is a standard investor in each the supply platforms.

Zomato in January acquired Uber`s Food supply enterprise in India – UberEats — in an all-stock deal for practically Rs 2,500 crore. Uber has 9.99 per cent stake within the Goyal-led meals supply platform.

Japanese conglomerate SoftBank, the biggest investor in Grofers, can be more likely to pump in round $100 million in Zomato.

Media reviews stated final week that Zomato has raised $5 million from British funding supervisor Baillie Gifford`s Pacific Horizon Investment Trust. Zomato earlier raised $150 million from current investor Ant Financial, an affiliate of Alibaba.

The firm has additionally launched the `Feed the Daily Wager` initiative to help and guarantee meals for employees at building websites, outlets, eating places, supply employees, and native transport techniques who earn on each day foundation.

As a part of this marketing campaign, the meals supply big is offering ration kits to the each day wager communities which can be presently unable to help their household`s meals necessities.

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